#1New Category Acceleration Drives Profitability Forward to 2024 Preliminary Results 2022 Jack Bowles - Chief Executive | Tadeu Marroco - Finance and Transformation Director BAT A BETTER TOMORROW#2Important Information The information contained in this presentation in relation to British American Tobacco p.l.c. ("BAT") and its subsidiaries has been prepared solely for use at this presentation. The presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. BAT A BETTER TOMORROW References in this presentation to 'British American Tobacco', 'BAT', 'Group', 'we', 'us' and 'our' when denoting opinion refer to British American Tobacco p.l.c. and when denoting business activity refer to British American Tobacco Group operating companies, collectively or individually as the case may be. The information contained in this presentation does not purport to be comprehensive and has not been independently verified. Certain industry and market data contained in this presentation has come from third party sources. Third party publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of accuracy or completeness of such data. Forward-looking Statements This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any BAT shares or other securities. This presentation contains certain forward-looking statements, including "forward-looking" statements made within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as "believe," "anticipate," "could," "may," "would," "should," "intend," "p "plan," "potential," "predict," "will," "expect," "estimate," "project," "positioned," "strategy," "outlook", "target" and similar expressions. These include statements regarding our intentions, beliefs or current expectations concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the economic and business circumstances occurring from time to time in the countries and markets in which the British American Tobacco Group (the "Group") operates, including the projected future financial and operating impacts of the COVID-19 pandemic. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the expectations reflected in this presentation are reasonable but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated. In particular, among other statements: (i) certain statements in the opening section (slide 11); (ii) certain statements in Tadeu Marroco's section (slides 23, 27, 32, 34 and 38-40); and (iii) certain statements in Jack Bowles' section (slides 43-44, 48-49 and 51-52). Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are uncertainties related to the following: the impact of competition from illicit trade; the impact of adverse domestic or international legislation and regulation; the inability to develop, commercialise and deliver the Group's New Categories strategy; adverse litigation and dispute outcomes and the effect of such outcomes on the Group's financial condition; the impact of significant increases or structural changes in tobacco, nicotine and New Categories related taxes; translational and transactional foreign exchange rate exposure; changes or differences in domestic or international economic or political conditions; the ability to maintain credit ratings and to fund the business under the current capital structure; the impact of serious injury, illness or death in the workplace; adverse decisions by domestic or international regulatory bodies; changes in the market position, businesses, financial condition, results of operations or prospects of the Group; and direct or indirect adverse impacts associated with Climate Change and the move towards a Circular Economy. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. The forward-looking statements reflect knowledge and information available at the date of preparation of this presentation and BAT undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements. No statement in this presentation is intended to be a profit forecast and no statement in this presentation should be interpreted to mean that earnings per share of BAT for the current or future financial years would necessarily match or exceed the historical published earnings per share of BAT. 2#3Important Information BAT A BETTER TOMORROW Forward-looking Statements (continued) Additional information concerning these and other factors can be found in BAT's filings with the U.S. Securities and Exchange Commission ("SEC"), including the Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtained free of charge at the SEC's website, http://www.sec.gov, and BAT's Annual Reports, which may be obtained free of charge from the British American Tobacco website www.bat.com. Additional Information All financial statements and financial information provided by or with respect to the US or Reynolds American Inc. ("Reynolds") are initially prepared on the basis of U.S. GAAP and constitute the primary financial statements or financial records of the US business/Reynolds. This financial information is then converted to International Financial Reporting Standards as issued by the IASB for the purpose of consolidation within the results of the BAT Group. To the extent any such financial information provided in this presentation relates to the US or Reynolds it is provided as an explanation of, or supplement to, Reynolds' primary U.S. GAAP based financial statements and information. Our vapour product Vuse (including Alto, Solo, Ciro and Vibe), and certain oral products including Velo, Grizzly, Kodiak, and Camel Snus, which are sold in the US, are subject to the Food and Drug Administration ("FDA") regulation and no reduced-risk claims will be made to these products without agency clearance. Although financial materiality has been considered in the development of our Double Materiality Assessment ("DMA"), our DMA and any related conclusions as to the materiality of sustainability or ESG matters do not imply that all topics discussed therein are financially material to our business taken as a whole, and such topics may not significantly alter the total mix of information available about our securities. No Profit or Earnings Per Share Forecasts No statement in this presentation is intended to be a profit forecast and no statement in this presentation should be interpreted to mean that earnings per share of BAT for the current or future financial years would necessarily match or exceed the historical published earnings per share of BAT. Audience The material in this presentation is provided for the purpose of giving information about BAT and its subsidiaries to investors only and is not intended for general consumers. BAT, its directors, officers, employees, agents or advisers do not accept or assume responsibility to any other person to whom this material is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. The material in this presentation is not provided for product advertising, promotional or marketing purposes. This material does not constitute and should not be construed as constituting an offer to sell, or a solicitation of an offer to buy, any of our products. Our products are sold only in compliance with the laws of the particular jurisdictions in which they are sold. 3#4We are Delivering on Our Three Priorities (0°) A-Ws+ B B A Step Change in New Categories Combustible Value Growth Simplify the Company BAT A BETTER TOMORROW 4#5We are Well on Track to Achieve 50m Consumers BAT of Non-Combustible Products by 2030 A BETTER TOMORROW 8 2018 Source: Company data. * See Appendix A6. 30% 2018-2022 CAGR 10.5 13.5 18.3 2019 2021 Consumers of Non-Combustible products* 2020 22.5m 22.5 2022 5#6...and £5bn New Category Revenue by 2025 2.9bn 33% 2018-2022 NC Revenue CAGR 917 2018 Source: Company data. *Growth versus FY21. 1,255 2019 1,443 2020 2,054 2021 2,894 2022 BAT A BETTER TOMORROW Non-Combustible % of Group Revenue 14.8% +2.4 ppts 6#7We Have Built Two, Billion Pound Global Brands* BAT A BETTER TOMORROW Vuse VUSE This prober which is a high addictive Vuse GLOBAL YAPING CHARGE BEYOND TO GOLDEN WITH VUSE GOLDEN TOBACCO Vuse #1 Global value share** MORE FLAVOURS TO GO NEW vuse GO DISPOSABLES UP TO 500 PUFFS Based on story testing of newly matured product and may vary depending on individual usage behavi "Based on Ve estimated vate share med retal for the total por category value in real saes) in the USA, Canada France, UK, Geany at of December 2021 These 5 marts over an estimated 77% of global pour cesed system NTO, cacin 2021. 16 any This product certains nictine and is a 18+ ONLY glo PLEASURE REDEFINED, YOUR WAY LOOKS GREAT, TASTES GREAT NEW HYPER X2 glo outpacing category growth^ glo STYLE REDEFINED, YOUR WAY BRIGHTER, BOLDER, LIGHTER NEW HYPER X2 STRONGER NICOTINE POUCHES MINI POUCH. FOR ON THE OVE. OTAN Red Hot VELO Green Hot YOU'VE GOT VELO ****** Velo #1 in 15 markets in Europe^^ 13 ONLY OVER 18 This product contains nicotina, which is a highly addesive substan Urbon Vibe WE GO MINI. YOU GO EVERYWHERE. VELO VELO SPLASH OF EXOTIC FLAVOURS YOU'VE GOT VELO YOU'VE GOT VELO WE GO MINI YOU GO EVERYWHERE. OTAA YOU'VE GO VELC * Vuse and glo FY22 revenue. **Vapour value share across Top 5 markets: US, Canada, UK, France, Germany. T5 represent 88% of Vapour industry revenue (rechargeables and disposables). See Appendix A3. ^ Volume growth across Top 9 THP markets: Japan, South Korea, Russia, Italy, Hungary, Greece, Ukraine, Poland and Czech Republic. Top 9 represent 80% of THP industry revenue. ^^Volume share of Modern Oral category. See Appendix A3. See Vuse and Velo advertisement footnotes in Appendix A11. 7#8... and We are Embedding ESG Across Our Brands BAT A BETTER TOMORROW glo See Appendix A5. IMPROVING PACKAGING RECYCLABILITY Vuse NEW SENSATION OPTIMISING vuse PRODUCT DESIGN FOR CIRCULARITY N ID This prot contains nicotine which is a highly addictive substance HOVEONTOVELO Imety.com and ince REDUCING CARBON VIL VELO DN'T REDUCING ME. PLASTIC MOVE ONTO VELO NICOTINE POUCHES IN A RECYCLABLE CAN. YOU'VE GOT VELO T&CS DEVICE TAKE-BACK SCHEME O SUPPORTED BY SCIENCE 8#9We are Accelerating our ESG Agenda across the Business 2022 highlights Targets E 33% 36% Renewable energy use* Operations sites AWS certified** 50% by 2030* Member of Dow Jones Sustainability Indices Powered by the S&P Global CSA CDP DISCLOSURE INSIGHT ACTION A LIST 2022 CLIMATE 100% by 2025 Bloomberg Gender-Equality Index 2023 Member S Female representation in management roles* *** 41% 100% 1st 100% Chief Sustainability Officer appointed 45% by 2025 Identified child labour incidents resolved^ G Aiming for zero incidents by 2025^^ Further sustainability integration BAT Continued External Recognition A BETTER TOMORROW SOBC training & Compliance sign-off completed Low-Carbon Transition Plan ΑΛΛ Aiming for 100% adherence to SOBC ^^^ SCIENCE BASED TARGETS DRIVING AMBITIOUS CORPORATE CLIMATE ACTION SBTi Approved Commitments * Renewable energy target restated from 30% by 2025 to 50% by 2030. See Appendix A5. ** Alliance for Water Stewardship. ***See Appendix A9. ^ Reported as resolved by end of growing season. ^^ In our tobacco supply chain (incl. directly contracted farmers and those of our strategic third-party suppliers, representing over 80% of the tobacco purchased by volume in 2022). ^^^ Standards of Business Conduct employee sign-off. A rating and award is not a recommendation to buy, sell or hold securities. A rating and award may be subject to withdrawal or revision at any time. Each rating and award should be evaluated separately of any other rating. The methodologies of any rating or award presented here may not be he same as those of other ratings, awards or methodologies that may be used by our stakeholders and may emphasize different aspects of ESG practices and performance, and, thus, may not be representative of our ESG performance in all respects. 9#10We are Transforming at Speed in Our Established BAT A BETTER TOMORROW Markets Non-Combustible products revenue % FY22* SWE 74% FRA 41% JPN 52% 4 DEN 40% UK 46% ITA 38% Revenue from Non-Combustible products as a % of total revenue in each respective market. ** Reflects Group's Europe region %. POL 43% US 17% + NOR 41% CAN 15% ** EUROPE* ~20% 10#11... Driving Strong Improvement in Category Contribution New Category Contribution (£bn) 2022 2020 -1.1 2021 -1.0 -0.4 +£0.7bn* BAT A BETTER TOMORROW While investing >£2bn in 2022 New Category Profitability Now Expected in 2024 Improvement versus FY20 at constant rates at category contribution level: Profit from operations before the impact of adjusting items and translational foreign exchange, having allocated costs that are directly attributable to New Categories. See Appendix A2. 11#12Combustible Value Growth Continues to Fuel our Transformation Revenue Growth* 2.7% CAGR (2018-22) Group Adjusted Profit From Operations Growth** 5.2% CAGR (2018-22) Value Share Growth *** +20bps p.a. (2018-22) *** BAT -26% SKUS (vs 2018) A BETTER TOMORROW SKU Rationalisation * On a constant rate basis. See Appendix A2. See Appendix A3. ** On an adjusted constant rate basis. See Appendices A1 & A2. Cigarette value share. See Appendix A3. For details on FY22 combustibles performance, please see later performance sections in this deck including slides 29, 30 and 31. 12#13... Alongside £1.9bn Annualised Savings Achieved through Simplification £660m 2020 £1,255m +£595m 2021 £1,884m +£629m 2022 Significantly Outperforming Our Initial £1bn Target BAT A BETTER TOMORROW 13#14...Driving Strong Cash Delivery £6.5bn 6,519 2019 Free Cash Flow pre dividends* £7.3bn 7,295 2020 £7.5bn * Free Cash Flow before payment of dividends at current rates. See Appendices A1 & A7. ** See Appendix A8. 7,447 2021 £8.0bn 8,049 2022 BAT A BETTER TOMORROW €30% of market cap returned through dividends to shareholders 4 consecutive years of at least 100% Operating Cash Conversion** 14#15We Continue to Attract New Capabilities to Accelerate Our Transformation Fair Pay Workplace 3,000+ new capability hires since 2019 47% Female 569 CERTIFIED 2019 703 BEST HUMAN RIGHTS CAMTALGS PLACES TO WORK 2022 for LGBTQ+ Equality 100% CORPORATE EQUALITY INDEX 2020 * See Appendix A9. Source: LinkedIn survey. * 1,050 2021 1,091 2022 Senior hire turnover* below market norm* 33% Hires in 2015-2016 Recognised with External Accreditations Market Norm (within 2yrs of hire): 35% - 40% BAT ** top EMPLOYER 2023 A BETTER TOMORROW 26% Hires in 2019-2020 GLOBAL CERTIFIED EXCELLENCE IN EMPLOYEE CONDITIONS RACE AT WORK CHARTER 15#16With Continued Strong Momentum in 2022 1⁰ A-Ws+ B B Step Change in New Categories Combustible Value Growth Simplify the Company 2022 highlights BAT A BETTER TOMORROW +37% Revenue growth* Contribution improvement** +4.6% Combustibles Price/Mix*** Annualised Quantum savings 2020-22 £0.6bn Flat Cigarette Value Share^ £1.9bn £8.0bn Free Cash Flow^^ * Constant rate growth. See Appendix A2. ** Reduction versus FY21 at constant rates at category contribution level: Profit from the sales of brands after deduction of directly attributable costs (including R&D, marketing) and before allocation of overheads. See Appendix A2. *** See Appendix A4. ^ See Appendix A3. ^^ Free Cash Flow before payment of dividends at current rates. See Appendices A1 & A7. 16#172022 Delivering on Guidance Finance and Transformation Director - Tadeu Marroco BAT A BETTER TOMORROW#18In 2022, We Continued to Transform and Deliver... BAT Transforming our business Delivering robust financial results A BETTER TOMORROW Successfully navigating the macro-environment 18#192022 Reported Results Impacted by One-off Items* BAT A BETTER TOMORROW +7.7% Group Revenue +2.8% Profit from Operations * Results presented on a reported current rate basis. Ę -170bps Group Operating Margin P -1.3% Diluted EPS Reported results most significantly impacted by impairment of Russian and Belarusian assets, restructuring charges and other litigation 19#20Adjusted Results Demonstrate Our Resilience all +2.3 +4.6. Group Revenue* Combustibles Price/Mix** % all ¹% New Category Revenue* Flat Cigarette & THP Value Share^ bps Adjusted Operating Margin^^ all +37% +150 +4.3% +5.8 Adjusted Profit from Operations* £8.0bn ▼ BAT Free Cash Flow*** A BETTER TOMORROW EPS* % Adjusted Diluted Share growth FY22 versus FY21. Financials growth versus FY21. Source: Company data. * On a constant rate basis. See Appendix A2. ** See Appendix A4. ^ See Appendix A3. *** Free Cash Flow before payment of dividends at current rates. See Appendices A1 & A7. ^^ On an adjusted current rate basis. See Appendix A1. 20#21Our Multi-Category Strategy is Working... >25% Revenue Growth* Across All Three New Category Brands ● Vuse C 1' CHARGE BEYOND TO STYLE WITH THE NEW VUSE ePOD 2 AT VUSE.COM Revenue* up +44% Volume up +14% Category Share** 35.9% ● glo glo TASTE REDEFINED, YOUR WAY ADVANCED HEAT TECHNOLOGY SIMPLE PLEASURE NEW HYPER X2 Revenue* up +27% Volume up +26% Category Share** 19.4% ● ● NICOTINE POUCHES BAT VELO A BETTER TOMORROW SKIPPING LUNCH HITTING THE BEACH YOU'VE GOT VELO OVER 18 This product contains nicotine, which is a highly addictive substance. ОЛДА X-Freeze Revenue* up +46% Volume up +22% Category Share** 30.4% Growth FY22 versus FY21. * Revenue growth at constant rates. See Appendix A2. ** See Appendix A3. Vapour value share across Top 5 markets: US, Canada, UK, France, Germany. Top 5 represent 88% of Vapour industry revenue (rechargeables and disposables). glo volume share across Top 9 THP markets: Japan, South Korea, Russia, Italy, Hungary, Greece, Ukraine, Poland and Czech Republic. Top 9 represent 80% of THP industry revenue. See Vuse and Velo advertisement footnotes in Appendix A11. Velo volume share across Top 5 Modern Oral markets: US, Sweden, Denmark, Norway and Switzerland. Top 5 represent 80% of Modern Oral industry revenue. 21#22Vuse Extending Global Leadership** 16.2% 25.5% 33.5% 35.9% +250bps Value share growth FY22 vs FY21 2019 2020 2021 Vuse value share of total Vapour in key markets** 2022 BAT A BETTER TOMORROW Vapour revenue up 44%*, ahead of 14% volume growth Vuse extends US leadership; leading in 35 states with total Vapour value share of 40.9%, up 8.4 ppts Continued value share leadership of closed systems*** in key markets** Continued progress on driving profitability with positive contribution^ in 3 of 5 key markets Continued strong geo-expansion driven by Vuse Go * Revenue growth at constant rates. See Appendix A2. ** Vapour value share across Top 5 markets: US - Marlin, Canada - Scan Data, UK - Nielsen, France - Strator, Germany - Nielsen. See Appendix A3.. T5 represent 88% of Vapour industry revenue (rechargeables and disposables). *** Value share of closed systems (excluding disposables) across Top 5 markets. See Appendix A3. ^ Category contribution level: Profit from operations before the impact of adjusting items and translational foreign exchange, having allocated costs that are directly attributable to New Categories. 22#23Modern Disposable Segment Accelerating Total Vapour Category Growth HT'19 H2'19 Total Vapour Rechargeable Closed System H1'20 +30% Modern Disposables +158% +4% HI'22 H2'22 ● ● Vuse Go Positioned with premium pricing Very limited cannibalisation VUSE GO Already #2 value share in the UK, FRA, GER, SA Take-Back scheme for devices Youth Access ^ b5asn © 69 esh 65 ash ƏSA Prevention controls ƏSA BAT A BETTER TOMORROW 69 ash H2'20 H121 H2'21 Vapour Industry Value* Vuse Go Available in 24 Markets with Accelerated Geo-Expansion Planned for 2023 * Retail industry trend across Top 5 markets: US, Canada, UK, France, Germany. Top 5 represent 88% of Vapour industry revenue (rechargeables and disposables). Poly-Usage defined in Appendix A10. vuse GO 09 vuse GO 23#24glo Continues to Make Category Share Gains 12.4% 17.9% 2020 +140bps Volume share growth FY22 vs FY21 19.4% 2021 glo volume share of THP category in key markets* 2022 ** BAT A BETTER TOMORROW glo revenue up 27%* with sequential growth accelerating in H2 glo consumables outpacing industry volume growth 1.7 times. glo pricing increased while maintaining volume share of THP category Excluding Russia, our share of Top 8 markets (representing c.82% of total THP volumes) reached 18.7%, up 1.1 ppts glo Hyper X2 available in 21 markets globally * Revenue growth at constant rates. See Appendix A2.** Share of THP volume. Japan - CVS-BC, South Korea - CVS, Italy - Nielsen, Hungary - NDN, Greece - Nielsen, Ukraine - Nielsen, Poland - Nielsen, Russia - IMS, Czech Republic - Nielsen. Across Top 9 THP markets: Japan, South Korea, Russia, Italy, Hungary, Greece, Ukraine, Poland and Czech Republic. Top 9 represent 82% of THP industry revenue. See Appendix A3. 24#25glo Hyper X2 is Delivering Positive Early Results in BAT Japan A BETTER TOMORROW LUCKY STRIKE BERRY MENTHOL for glo hyper | 加熱式たばこの煙(蒸気) は、周りの人の健康への 悪影響が否定できません。 健康増進法で禁じられ ている場所では喫煙でき ません。 LUCKY STRIKE MENTHOL for glo hyper | 加熱式たばこの煙(蒸気) は、周りの人の健康への 悪影響が否定できません。 健康増進法で禁じられ ている場所では喫煙でき ません。 2000 DARK TOBACCO LUCKY STRIKE for glo hyper 加熱式たばこの煙(蒸気) は、周りの人の健康への 悪影響が否定できません。 健康増進法で禁じられ ている場所では喫煙でき ません。 RICH TOBACCO LUCKY STRIKE for glo hyper | 加熱式たばこの煙(蒸気) は、周りの人の健康への 悪影響が否定できません。 健康増進法で禁じられ ている場所では喫煙でき ません。 Feat BARELTO TES 300 M/W VELO SECHE ΟΤΑΝ なんだこれ? 外とイイ! VELO Already reached 1 million device sales Added c.400k+ new consumers Building positive sentiment driven by design, style, usability and colours Further price laddering with New Lucky Strike consumables range launched in Nov'22 Velo city pilot delivering positive early results Expanding our Multi-Category Offering in the Established THP Market 25#26Velo's European Leadership* Continues; now Unlocking Emerging Markets 62.1% 65.7% 69.5% 68.8% 69% Volume share stable FY22 vs FY21 2019 2020 2021 2022 Velo volume share of Modern Oral category in Europe*** BAT A BETTER TOMORROW Modern Oral revenue up 46%** ahead of volume growth of 22% Velo's European volume share leadership in Modern Oral stable at 69%* Velo remains volume share leader in 15 Modern Oral markets in Europe In the US, we have submitted a PMTA for a new Velo product Unlocking significant opportunity in Emerging Markets * Volume share leadership FY22 based on 4 of Top 5 Modern Oral markets globally, which are in Europe. ** Revenue growth at constant rates. See Appendix A2. *** Volume share growth of Modern Oral category based on 4 of Top 5 Modern Oral markets globally, which are in Europe. Sweden - Nielsen, Denmark - Nielsen, Norway - Nielsen, Switzerland - Scan Data (excl. SPAR, Top CC & Alligro). See Appendix A3.. 26#27Pakistan is Already our Third Largest Velo Market* BAT A BETTER TOMORROW Consumer-centric positioning BREAKIN BREAK FREE FROM CONVENTION KFREE WITH VELO ALL THE ENJOYMENT NO SMOKE, NO ASH, NOTAR. #MoveOnToVelo The tea and contains notion octub AVAILABLE AT VEO.COM 18+ ONLY. THIS PRODUCT CONTAINS NICOTINE AND IS ADDICTIVE KEEP OUT OF REACH OF CHILDREN. ALL THE ENJOYMENT NO SMOKE, NO ASH, NO TAR.* #MoveOnToVelo AVAILABLE AT VELO.COM 18+ ONLY. THIS PRODUCT CONTAINS NICOTINE AND IS ADDICTIVE. KEEP OUT OF REACH OF CHILDREN. 340k Velo consumers veloundstation e * In terms of volume. ** At constant rates. See Appendix A2. # ផ Q Engaging digital approach ♡ THIS PHONE WILL LOOK GOOD IN YOUR HAND VE O PRESENTS VEE IMETOŠKE candoned Communikation +30m audience reach Innovations driving growth FOR YOUR KEEP IT FRESH EVERYDAY MOMENT TUCK AN ELAICHIBLAST NICOTINE POUCH THE EASTERN MIX YOU'VE GOT VELO AVAILABLE AT VELO.COM FOR YOUR SPICY WEEKEND MOMENT TUCK AN EXOTIC BLACK NICOTINE POUCH. THE EASTERN YOU'VE GOT VELO AVAILABLE AT VELO.COM Flavours delivering +20% sales Fast scale up with local production 7x Revenue growth since 2020** 2020 2021 2022 Lowest Velo COGS globally Further Pilots in 2023: Japan, South Africa, Kenya and More 27#28And we are Exploring Opportunities Beyond Nicotine... SCIENCE PURISSIMA trait BAT A BETTER TOMORROW OPEN BOOK EXTRACTS BAT CO R&D BAT PRODUCT DEVELOPMENT COLLABORATION - CoE ORGANIGRAM Connecting our ecosystem to amplify the sum of the parts >> * M&A in 2022 refers to a non-controlling minority stake in Sanity Group and an investment in Charlotte's Web. M&A* USA CHARLOTTE'S WEB™ STANLEY BROTHERS ORGANIGRAM Sanity Group CAN GER Building an Ecosystem of Capabilities AWAKEⓇ Btomo oW Ventures youvit BAT A BETTER TOMORROW CM Venture Capital BLOCKHEAD actronika KANVAS. Feel moment 28#29Combustibles Delivered a Resilient Performance BAT A BETTER TOMORROW Flat Combustibles Value Share* -20 bps Combustibles Volume Share* +10bps US Value Share* E -5.2 +4.6% -0.6% Combustibles Combustibles Price/Mix** Volume Combustibles Revenue*** Financials growth FY22 versus FY21 * Share growth versus FY21. Cigarette share. See Appendix A3. Source: Company data. ** See Appendix A4. *** On a constant rate basis. See Appendix A2. The BAT Group does not own all brands featured in this presentation in all markets, e.g. BAT is the owner of Camel and Natural American Spirit in the US only. EST 1907 DUNHILL TOBACCO OF LONDON ITD KENT Newport NATULI AMERICAN SPIRIT CIGARETTES LUCKY STRIKE CAMEL Rothmans OF LONDON 1890 PALL MALL 29#30All Four Regions Contributing to Results New Category Combustible Revenue* Value Share** FY2022 Europe APME AmSSA US Group Revenue* +7.0% +7.7% +4.7% -2.8% +2.3% +42.7% +10.1% +47.5% +51.6% +37.0% Financials growth FY22 versus FY21. * On a constant rate basis. See Appendix A2. ** Share growth versus FY21. See Appendix A3. -10bps +10bps -60bps +10bps Flat BAT A BETTER TOMORROW Adjusted Profit from Operations* +7.5% +3.0% +4.3% +3.5% +4.3% 30#31سرا US: Excellent Vuse Performance Offset by Macro Headwinds in Combustibles ▼ +52% New Category Revenue Growth* + +840bps Vapour Value Share* *** -2.8 US Total Revenue Growth* bps + % +330 bps Adjusted Operating Margin Growth^ میرا +10bps US Combustibles Value Share** +3.5% US Operating Profit Growth ● ● • Total Nicotine value share 37.2% up 40bps** ● ● ● Vuse value share leadership at 41%* Leader in 35 states • 46% revenue growth* Strong category contribution growth BAT 2022 A BETTER TOMORROW Macro-economic weakness driving accelerated downtrading in the combustible industry in ● *** Combustible value share growth up 10bps Activated commercial plans: ● Price laddering across all brands^^ Targeted investment • Through Revenue Growth Mgmt (RGM) • Continued strength of Lucky Strike 2019-22 combustible industry volume -5% CAGR Financials growth FY22 versus FY21. Share growth versus FY21. * On a constant rate basis. See Appendix A2. ** Total nicotine value share covers: combustibles, vapour and total oral. Source: Marlin. See Appendix A3. *** Vuse value share of total Vapour FY22. Source: US Marlin. See Appendix A3. Source: Company data. ^ On an adjusted, constant rate basis. See Appendices A1 & A2. ^^ Price laddering refers to products having different recommended resale prices across the portfolio. 31#32US: 2023 Performance Expected to be H2 Weighted BAT A BETTER TOMORROW Source: Oxford Economics Source: Consensus (): Record high inflation Source: Prevedere Strong Macro-Economic Headwinds in 2022 Source: Oxford Economics Interest rate hikes 8% Avg. 2022 Falling real disposable income Record low consumer sentiment 7 times Since Feb 22 71 Dec 21 -6.9% 50 Jun 22 9.1% Peak June 22 +4.25% By Dec 22 Nov YTD 22 57 Nov 22 Early Signs of Recovery for 2023 Gas prices stabilising Source: U.S. Energy Information Administration Source: U.S. Bureau of Labor Statistics M Wage growth Source: Federal Reserve Bank of Atlanta Low/Stable unemployment 3.6% Stable elasticities +30% Avg. 2022 vs. avg. 2021 Source: Oxford Economics -1.7 pps 2022 vs. 2021 5.4% +6.3% 12mo moving avg. 0.39 2019 Pre-COVID -2% Dec 22 vs. Dec 21 -0.4ppts Dec 22 vs. Dec 21 3.5% 3.9% +0.8ppts Dec 22 vs. Dec 21 5.9% 5.1% 0.41 2022 32#33Strong Group Operating Margin Expansion: Successfully Offsetting Increasing Inflation 43.4 2021 Adjusted Operating Margin 1.2 Price/mix* and Operational Efficiencies (Rest of Business) * See Appendix A4. ** On an adjusted current rate basis. See Appendix A1. +1.5 pts 0.8 +150 bps Margin Improvement** Incremental New Categories (0.6) Transactional FX BAT A BETTER TOMORROW 44.9 2022 Adjusted Operating Margin** 33#34...While Building a Commercially Sustainable New Category Business 2022 Key > profit drivers Scale benefits Reduced Cost of Goods Pricing, Lower Trade Margins** & Data Analytics Powered by RGM & MSE*** c.60% c.40% BAT A BETTER TOMORROW €578m Improvement in New Category contribution* On Track to Deliver New Category Profitability in 2024* Improvement FY22 versus FY21 at constant rates and profitability at category contribution level: Profit from operations before the impact of adjusting items and translational foreign exchange, having allocated costs that are directly attributable to New Categories. See Appendix A2. ** References to trade margins are to recommended trade margins based on recommended resale prices. *** RGM: Revenue Growth Management. MSE: Marketing Spend Effectiveness. 34#35Quantum Delivered £1.9bn Annualised Savings 2020-2022 with £629m Delivered in 2022 Alone Quantum 1 New global design principles Larger DRBUS Simpler processes Centres of Excellence Quantum 2 Digitally-enabled Fit-for-Future commercial capabilities End Market Operating Model Revenue Growth Management Marketing Spend Effectiveness BAT A BETTER TOMORROW Quantum 3 Leaner Leveraging HQ GBS Simpler processes Transforming our Ways of Working to Create a More Agile Organisation 35#36EPS* Growth up 5.8% at Top End of MSF Guidance BAT A BETTER TOMORROW 329.0 2021 16.1 Adjusted profit from operations -3.3 Net finance costs Adjusted diluted EPS at constant rates. See Appendices A1 & A2. 3.6 +5.8% -1.9 +5.8% Adjusted diluted EPS+ growth Associates Taxation 0.1 Non- controlling interests 4.5 Diluted number of shares 2481 2022 at constant FX +12.9% 23.3 FX impact 371.4 2022 at current FX 36#37Continued Strong Operating Cash Conversion Strong Operating Cash Conversion* III 103% 104% 100% FY20 FY21 FY22 Driven by continued focus on cash delivery Leverage Reduced to 2.9x Adjusted net debt / adjusted EBITDA** 3.26 FY20 £1.8bn £3.0bn £5.7bn 2.99 FY21 2.89 FY22 Hybrid Bond** Bi-laterals Existing RCF:1 & 5 year term; No financial covenants * See Appendices A1 & A8. ** FY21 hybrid issuance at Current FX. *** Adjusted net debt to adjusted EBITDA at current rates. See Appendix A1. ^ On a net debt basis. Short Term Bond Maturity Profile 2.5 £ in billions Due¹23 9.9 yr 97:3 71:12:13:4 4.2 BAT? A BETTER TOMORROW Continue to Reduce Leverage within the 2-3x Corridor*** 4.4 Due'24 Due¹25 Average Maturity Fixed: Floating^ US$:£:€:Other 37#382022 Saw an Unprecedented Global Interest Rate Environment Policy rate forecasts % 5 4 2 1 Fed funds target rate ECB deposit rate -Bank of England Bank Rate -1 2015 2016 2017 2018 Source: Oxford Economics/Haver Analytics 2019 2020 2021 2022 Forecast 2023 2024 BAT A BETTER TOMORROW 4.0% BAT average cost of debt 38#39We are Maintaining an Active Capital Allocation Framework for 2023 Growing Dividend Cash Flow Investing in our Transformation Free Cash Flow* Leverage within 2-3X* Litigation/ Fiscal/Regulatory outcomes ** Bolt-On M&A Share Buybacks +6% Dividend Growth and Further Deleverage * Free cash flow before dividends. See Appendices A1 & A7. ** Adjusted net debt to adjusted EBITDA at current rates. See Appendix A1. BAT A BETTER TOMORROW 39#40FY 2023 Group Guidance E 3-5% Organic Revenue Growth* (Excluding Russia/Belarus)** Mid Single Figure Adjusted Diluted EPS Growth** Continued Deleverage *** Within c.2-3X Adjusted Net Debt/Adjusted EBITDA^ range ● ● BAT A BETTER TOMORROW 2023 performance reflects expectations of: Incremental New Category investment Rising interest costs H2'23 weighted US performance c.2% transactional FX headwind 2023 transfer of businesses in Russia and Belarus On a constant rate basis. See Appendix A2. ** Excluded from both FY21 and FY22. *** Adjusted Diluted EPS on a constant rate basis. See Appendices A1 & A2. ^ Adjusted net debt to adjusted EBITDA at current rates. See Appendix A1. 40#412022 Continued Delivery in a Challenging Macro- Environment de f Transforming our business Delivering robust financial results Successfully navigating the macro environment BAT A BETTER TOMORROW 2022 highlights +37% £0.6bn Revenue growth* Contribution improvement** +2.3% +5.8% Revenue growth* Adjusted diluted EPS growth *** Annualised Quantum savings 2020-22 £1.9bm +150bps Adjusted Operating Margin^ * Constant rate growth. See Appendix A2. ** Improvement versus FY21 at constant rates at category contribution level: Profit from operations before the impact of adjusting items and translational foreign exchange, having allocated costs that are directly attributable to New Categories. See Appendix A2. *** Adjusted Diluted EPS on a constant rate basis. See Appendices A1 & A2. ^ On an adjusted current rate basis. See Appendix A1. 41#42Taking BAT Strategy to the Next Level Chief Executive - Jack Bowles BAT A BETTER TOMORROW#43New Categories are Accelerating We are delivering... Strong momentum in New Categories 33% revenue CAGR last 4 years Losses reduced by c.£600m in 2022* Inflection point in model ● ● and getting fit for growth Strategic review Simplified regional structure New market archetypes c.30 expected market exits ● ● ● >> ▶ ● Increasing investment >£2bn New Category investment 2022 Increased investment expected in 2023 ● BAT A BETTER TOMORROW ● Smarter investment Strategic resource re-allocation Globally developed, locally deployed On Track to Reach New Category Profitability a Year Early * Reduction versus FY21 at constant rates at category contribution level: Profit from operations before the impact of adjusting items and translational foreign exchange, having allocated costs that are directly attributable to New Categories. See Appendix A2. 43#44Nicotine Industry Revenue Growth Forecast at +3.5% CAGR £96 14 82 2021 £100 17 83 3.5% CAGR 2022 £104 20 84 £107 22 85 2023 2024 Total Nicotine Industry Revenue (Bn)* ■Combustibles + Traditional Oral New Categories £111 25 +15% CAGR 86 +1.1% CAGR 2025 With c.75% Industry Growth from New Categories BAT Source: Future data is estimated based on KANTAR Incidence Study & BAT Internal estimates (excl. India, China, Russia & Vapour open systems). * Nicotine industry incudes Combustibles, Traditional Oral and New Categories. A BETTER TOMORROW 130m New Category Consumers By 2025 44#45Driven by Growing Interaction with New Categories 26.4% % of daily smokers interacting with New Categories 2019 35.0% 2.7% 5.2% 2022 2019 Established New Category Markets* All other Combustibles Markets 2022 7.9% 2019 Global Differing by New Category Market Maturity 12.2% 2022 Source: KANTAR Incidence Study and Consumer Survey across Top 42 markets at industry level. * New Category established markets where New Categories represent >25% of total nicotine consumers at industry level. BAT A BETTER TOMORROW 45#46....and Supported by NC Shift across Demographics BAT A BETTER TOMORROW Increased New Category Usage by Age Cohort in Established NC Markets (%) FMC Solus*> Dual (FMC/NC)^ NC Solus .*** Adult nicotine consumers Min legal age-30 30-45 45+ Across Top markets* 15% 16% 22% 85 2019 14% 86 2019 11% 89 2019 84 2020 15% 85 2020 12% 88 2020 78 2021 18% 82 2021 14% 86 2021 27% 73 2022 23% 77 2022 17% 83 2022 NC Established Markets** NC > 25% of Nic 55% 45 2019 46% 54 2019 28% 72 2019 55% 62% 72% 45 2020 48% 52 2020 28% 72 2020 38 2021 53% 47 2021 68 28 2022 2021 59% 32% 37% 2022 63 2022 c.70% of Adult Nicotine Consumers Under 30 use New Categories in Established Markets NC Solus (40%) FMC Solus (28%) Source: KANTAR Incidence Study and Consumer Survey across Top 42 markets at industry level. *Top 42 markets at industry level. ** New Category established markets where New Categories represent >25% of total nicotine consumers at industry level. Factory Made Cigarette. ^ Dual refers to a transitional period for FMC consumers towards a complete switch to New Category products during which period such FMC consumers reduce cigarette consumption and choose to add to it a consumption of one or more New Category nicotine products. *3** 46#47New Category Poly-Usage* is Increasing Fast 55 41 13 3 2019 60 43 17 7 6 2020 74 54 21 10 10 2021 Net of poly-usage* 87 Total NC 62 26 11 12 Vapour THP ΜΟ Poly-Usage NC 2022 New Category consumer growth CAGR** 18% 16% 25% 73% 83% 51m Vapour 6.5m Modern Oral 4.2m Source: KANTAR Incidence Study and Consumer Survey across Top 42 markets at industry level. All numbers are for 2nd half (exit) of the year. ** CAGR 2019-2022. *See Appendix A10. BAT A BETTER TOMORROW Strong Vapour + THP poly-usage* growth c.5m (+60% CAGR**) 5.0 m 21m THP Inl Poly-usage* dynamics among New Category consumers in 2022 A Multi-Category Strategy is Key to Driving Sustainable Growth 47#48We are Taking BAT Strategy to the Next Level Optimal Regional & DRBU Realignment* From 4 to 3 Regions From 16 to 12 DRBUS Management board changes Drive speed, focus & agility Fit For Growth * Subject to applicable information and consultation requirements in some jurisdictions. Guide Strategic Choices and Resource Allocation 6 market archetypes New operating model Clear investment prioritisation Differentiated category focus Globally Developed, Locally Deployed BAT A BETTER TOMORROW Comprehensive Market Review c.30 Expected market exits >20 bn stick reduction Reduce complexity Resource reallocation 48#49Leading to an Optimal Regional & DRBU Realignment Pre Quantum Global 4 Regions 28 DRBUs >>> Quantum 1-3 Global 4 Regions 16 DRBUs >>> BAT A BETTER TOMORROW Fit for Growth Global 3 Regions 12 DRBUS With c.30 Expected Market Exits, and >20bn Fewer Cigarettes 49#50Guiding Strategic Choices & Resource Allocation Through Market Archetypes Market Archetype % of New Categories Contribution to Revenue* (2022) Drivers of Total Nicotine Revenue Growth* (2020-22 CAGR) 1 Combustibles Value Growth & Prepare for NC 2% 2 Drive Combustibles Value & Grow NC 7% 3 Drive NC & Protect Combustibles Value 34% Combustibles Contribution 4 Drive NC & Maximise Value from Combustibles 32% 5 Simplify & Extract Value from Combustibles New Categories Contribution 5% BAT A BETTER TOMORROW 6 Multi-category Growth 17% Dynamic Market Archetype Model Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. Our products as sold in the US, including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without FDA clearance.. * by archetype. 50#51Getting Fit for High Quality Sustainable Growth Global ↑ Local New Operating Model for Product and Marketing Further Process Simplification Accelerated Shared Service Delivery Highly Efficient & Effective DRBU & End Markets Globally Developed, Locally Deployed BAT A BETTER TOMORROW 51#52We are building A Better Tomorrow T TM From Cigarettes Declining Volume Growing Value 50 million consumers of Non-Combustible** products by 2030 £5bn New Category Revenue 2025 & Profitability by 2024*** A BETTER TOMORROW™ CO₂ Carbon neutral operations Scope 182 by 2030¹ NET ZERO To Net zero value chain emissions by 2050^ BAT Multi-Category CPG Nicotine & Beyond* A BETTER TOMORROW Growing Volume & Value के <1% waste from direct operations to landfill by 2025^ Reducing the health impact of our business, based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. * Beyond refers to Wellbeing & Stimulation. Expected target market for consumer acquisition is adult consumers seeking wellbeing and stimulation solutions in their daily lives. ** Consumers of Non-Combustible products definition. See Appendix A6. *** Profitability at category contribution level: Profit from operations before the impact of adjusting items and translational foreign exchange, having allocated costs that are directly attributable to New Categories. Environmental targets. See Appendix A5. 52#53Full Year 2022: Q&A 4 BAT A BETTER TOMORROW 4 # # a d 8 L 1 b 6 t 56 07 Jack Bowles - Chief Executive | Tadeu Marroco - Finance and Transformation Director # We purpose to Deter Tomoby reasong the featherpact of t 0 Find out more 6 BAT Y A Better TomorrowTM through science and innovation 423 J D G V * cart 3 f About un Our products 7 0 a 2 ********** O 4 How we work BATT Sustainability waves 42 Carbon-neutral Vuse is making Backspate inacors 9 # Coming soon-BAT's. year results#54Group Results excluding - Russia/Belarus - FY22 Group excluding Russia/Belarus FY22 Group excluding Russia/Belarus FY21 Growth excluding Russia/Belarus FY22 v FY21 Volume FMC & THP Revenue* NC Revenue* APFO*** Consumers of Non-Combustible products*** 581bn (€ Millions) 25,460 2,675 11,350 (Millions) 21.0 608bn (€ Millions) 25,011 1,957 11,011 (Millions) 17.1 On a constant rate basis. See Appendix A2. ** On an adjusted constant rate basis. See Appendices A1 & A2. *** See Appendix A6. -4.5% +1.8% +36.7% +3.1% +23% BAT A BETTER TOMORROW Total Group Growth FY22 v FY21 -4.2% +2.3% +37.0% +4.3% +23% 54#55Vuse value share across Top 5 Markets* 45.2% 35.4% US 57.7% 45.8% Continued closed system momentum across Key Vapour Markets (88% of Industry Revenue (rechargeables and disposables) Canada + 1Q22 2022 3Q224022 Quarterly average Disposables Industry Value Share* 21.6% YTD 88.0% 91.8% 1022 2022 3Q224Q22 Quarterly average Disposables immaterial 37.6% 10.7% UK 36.6% Vuse share of Total Vapour Category 9.1% 1Q22 2022 3Q22 4Q22 Quarterly average Disposables Industry Value Share* 72.9% YTD 86.7% 42.8% France 81.4% 38.4% I 1022 2022 3Q22 4Q22 Quarterly average Disposables Industry Value Share* 34.1% YTD Vuse share of Closed systems ex-disposables BAT 62.0% A BETTER TOMORROW ** Germany 49.1% H 65.1% 14.3% 1022 2022 3Q22 4Q22 Quarterly average Disposables Industry Value Share* 67.6% YTD * Top 5 markets: US, Canada, UK, France, Germany.Source: ** BAT value share of total Vapour - monthly average of quarter share FY22. BAT value share of closed systems excluding disposables - monthly average of quarter share FY. US - Marlin, Canada - Scan Data, UK - Nielsen, France - Strator, Germany - Nielsen. See Appendix A3. 55#56glo share of Cigarettes + THP across Key Markets* BAT A BETTER TOMORROW 7.5% Japan +0.6 ppts YTD 7.5% 1Q22 2022 3Q224Q22 Quarterly average 20.1% Category share YTD glo volume share across key markets (80% of THP Industry Revenue) Italy +0.8 ppts YTD 2.8% 2.5% 1022 2022 3Q22 4Q22 Quarterly average 14.5% Category share YTD South Korea +0.6 ppts YTD 2.1% 2.1% 1022 2022 3Q22 4Q22 Quarterly average 11.7% Category share YTD 3.3% Poland +2.2 ppts YTD 3.8% 1022 2022 3022 4Q22 Quarterly average 31.2% Category share YTD 1.6% Czech Rep +1.3 ppts YTD 2.5% 1022 2022 3022 4022 Quarterly average 14.4% Category share YTD * Top 9 THP markets: Japan, South Korea, Russia, Italy, Hungary, Greece, Ukraine, Poland and Czech Republic. ** Share of Cigarette + THP nicotine volume - monthly average of quarter share to FY22. Japan - CVS-BC, South Korea - CVS, Italy - Nielsen, Hungary - NDN, Greece - Nielsen, Ukraine - Nielsen, Poland - Nielsen, Russia - IMS, Czech Republic - Nielsen. See Appendix A3. Category share of THP volume year to date average FY22. T9 represent 80% of THP industry revenue. 56#57Velo: Continued International leadership* Velo Volume Share Across Key Markets** (80% of Industry Revenue) Norway 7.2% USA 1.6% H 1Q22 2022 3Q22 4Q22 Quarterly average share of Modern Oral Share of Total Oral 4.9% 1.4% 58.9% 9.6% Sweden 57.6% 12.4% 1Q22 2022 3Q224Q22 Quarterly average share of Modern Oral Share of Total Oral 63.3% 20.1% 63.5% 22.5% || 1Q22 2022 3Q224022 Quarterly average share of Modern Oral Share of Total Oral 93.8% 87.2% Denmark 91.4% 86.7% 1022 2022 3Q224022 Quarterly average share of Modern Oral Share of Total Oral 92.1% 60.1% BAT *** A BETTER TOMORROW Switzerland 93.6% 66.1% 1022 2022 3Q22 4Q22 Quarterly average share of Modern Oral Share of Total Oral Volume Share Leader in 15 European markets * Top 4 of 5 Modern Oral markets: Sweden, Denmark, Norway and Switzerland. ** Velo is volume share leader in 4 of the international top 5 (i.e. excluding the US). Volume share of Modern Oral category and volume share of total oral category - monthly average of quarter share FY22. US - Marlin, Sweden - Nielsen, Denmark - Nielsen, Norway - Nielsen, Switzerland - Scan Data (excl. SPAR, Top CC & Alligro). See Appendix A3. *** See Appendix A3. 57#58Top BAT Market Volume Share Movements* (1) Market Australia Bangladesh Belgium Brazil Canada Chile Colombia Czech Denmark France Germany * Cigarette + THP share. SOM FY22 Movement (ppt) (0.5) (1.0) (0.3) (2.0) (1.0) (0.4) 1.6 0.6 0.6 0.1 (0.2) (%) 39.9 84.5 24.9 71.9 46.3 96.4 57.1 21.5 68.4 14.9 21.1 Market Greece Hungary Italy Japan KSA Malaysia Mexico Netherlands New Zealand Pakistan Poland SOM FY22 (%) 12.7 24.1 17.8 20.1 27.7 51.6 36.0 19.8 61.7 78.4 25.1 BAT A BETTER TOMORROW Movement (ppt) 0.5 (0.6) 0.0 0.0 0.4 (0.8) (0.2) (0.5) (4.1) 0.8 0.7 58#59Top BAT Market Volume Share Movements* (2) Market Romania Russia South Africa South Korea Spain Switzerland * Cigarette + THP share. SOM FY22 Movement (ppt) (1.0) 0.1 (0.2) (0.2) 0.3 (0.4) (%) 50.4 23.6 65.8 12.0 10.3 32.8 Market Taiwan UK Ukraine USA SOM FY22 (%) 11.4 8.2 26.7 34.1 BAT A BETTER TOMORROW Movement (ppt) 0.1 0.2 0.2 (0.3) 59#60Appendix A1: Adjusting (Adj.) Adjusting items represent certain items which the Group considers distinctive based upon their size, nature or incidence. A2: Constant currency Constant currency - measures are calculated based on the prior year's exchange rate, removing the potentially distorting effect of translational foreign exchange on the Group's results. The Group does not adjust for normal transactional gains or losses in profit from operations which are generated by exchange rate movements. A3: Share metrics Volume share: The number of units bought by consumers of a specific brand or combination of brands, as a proportion of the total units bought by consumers in the industry, category or other sub-categorisation. Sub categories include, but are not limited to, the total nicotine category, modern oral, vapour, traditional oral or cigarette. Corporate volume share is the share held by BAT Group/Reynolds (US region). Except when referencing particular markets, volume share is based on our key markets (representing over 80% of the Group's cigarette volume). Value share: The retail value of units bought by consumers of a particular brand or combination of brands, as a proportion of the total retail value of units bought by consumers in the industry, category or other sub-categorisation in discussion. Total Nicotine share: The retail sales volume/value of the nicotine product sold as a proportion of total specified nicotine product volume/value in that market. In the US covers: Combustibles, vapour and total oral. BAT A BETTER TOMORROW A4: Price/Mix Price mix is a term used by management and investors to explain the movement in revenue between periods. Revenue is affected by the volume (how many units are sold) and the value (how much is each unit sold for). Price mix is used to explain the value component of the sales as the Group sells each unit for a value (price) but may also achieve a movement in revenue due to the relative proportions of higher value volume sold compared to lower value volume sold (mix). A5: Environmental Targets Targets cover: climate change, water and waste, sustainable agriculture. Full details are available from the latest ESG Report British American Tobacco - Sustainability reporting (bat.com) A6: Consumers of Non-Combustible Products The number of consumers of Non-Combustible products is defined as the estimated number of Legal Age (minimum 18 years) consumers of the Group's Non-Combustible products. In markets where regular consumer tracking is in place, this estimate is obtained from adult consumer tracking studies conducted by third parties (including Kantar). In markets where regular consumer tracking is not in place, the number of consumers of Non-Combustible products is derived from volume sales of consumables and devices in such markets, using consumption patterns obtained from other similar markets with adult consumer tracking (utilising studies conducted by third parties including Kantar). The number of consumers is adjusted for those identified (as part of the consumer tracking studies undertaken) as using more than one BAT Brand - referred to as "poly users". The number of consumers of Non-Combustible products is used by management to assess the number of consumers using the Group's New Categories products as the increase in Non-Combustible products is a key pillar of the Group's ESG ambition and is integral to the sustainability of our business. The Group's management believes that this measure is useful to investors given the Group's ESG ambition and alignment to the sustainability of the business with respect to the Non-Combustibles portfolio. A7: Free Cash Flow Net cash generated from operating activities before the impact of trading loans provided to a third party and after dividends paid to non-controlling interests, net interest paid and net capital expenditure. A8: Operating Cash Conversion Net cash generated from operating activities before the impact of adjusting items and dividends from associates and excluding trading loans to third parties, pension short fall funding, taxes paid and net capital expenditure, as a proportion of adjusted profit from operations. A9 Employee Definitions: Female representation in Management: Management grade employees at grade 34 or above, as well as global graduates. Senior hire turnover: Grade 37 and above. Senior Management: An employee who is either a direct report of a Management Board member or a direct report of a Management Board's direct report. A10: Poly-usage Refers to an adult consumer using more than one type of New Category product. A11: Vuse/Velo advertisement disclaimers (slides 7 and 21) Vuse Go: Disposable up to 500 puffs base don laboratory testing of newly manufactured product and may vary depending on individuals' usage behaviour. This product contains nicotine and is addictive. Comparison based on an assessment of smoke from a Vuse Vuse #1 vaping brand: Based on Vype/Vuse estimated value share from RRP in measured retail for vapour (i.e. total vapour category value in retail sales) in the US, CAN, FRA, UK, GER as of Dec 2021. These 5 markets cover an estimated 77% of global vapour closed systems revenue, calculated in July 2021. 18+ only. This product contains nicotine and is addictive.. Read wallet in pack. Velo: This product contains nicotine, which is a highly addictive substance. 60